The C-terminal domain (CTD) of the RNA polymerase II largest subunit consists of multiple heptad repeats (consensus Tyr1-Ser2-Pro3-Thr4-Ser5-Pro6-Ser7), varying in number from 26 in yeast to 52 in vertebrates. The CTD functions to help couple transcription and processing of the nascent RNA and also plays roles in transcription elongation and termination. The CTD is subject to extensive post-translational modification, most notably phosphorylation, during the transcription cycle, which modulates its activities in the above processes. Therefore, understanding the nature of CTD modifications, including how they function and how they are regulated, is essential to understanding the mechanisms that control gene expression. While the significance of phosphorylation of Ser2 and Ser5 residues has been studied and appreciated for some time, several additional modifications have more recently been added to the CTD repertoire, and insight into their function has begun to emerge. Here, we review findings regarding modification and function of the CTD, highlighting the important role this unique domain plays in coordinating gene activity.Eukaryotes have three nuclear DNA-dependent RNA polymerases (RNAPs): RNAP I, RNAP II, and RNAP III. RNAP II, responsible for the synthesis of all mRNA as well as many noncoding RNAs (ncRNAs), consists of 12 polypeptides, of which Rpb1, which possesses the enzyme's catalytic activity, is the largest. Rpb1 also contains a C-terminal domain (CTD) composed of tandem heptad repeats that constitutes a unique feature of RNAP II and distinguishes it from all other polymerases. The CTD is conserved from fungi to humans, although the number of repeats and their deviation from the consensus vary, reflecting to a large degree the complexity of the organism. The CTD plays important roles at all steps of the transcription process, including enhancing or modulating the efficiency of all of the RNA processing reactions required for completion of synthesis of the mature RNA. The phosphorylation state of the CTD is critical in determining its activity.